KARACHI:
Pakistan’s stock market suffered heavy losses on Monday as the benchmark KSE-100 index plunged 5,150 points, weighed down by institutional selling as political uncertainty and disappointing corporate results dented investor confidence.
In a show of extreme volatility, the index oscillated between the intra-day high of 179,969 and low of 173,574. The market saw broad-based weakness, which overshadowed buying activity and pulled the index deep into the red.
The trading session was marked by aggressive liquidation, weak sentiment and external pressures that collectively put the bourse under pressure. The downturn was not restricted to a single segment. Major sectors including commercial banks, oil & gas, fertiliser, cement and power faced hefty offloading.
KTrade Securities wrote in its market wrap that the Pakistan Stock Exchange (PSX) extended its weakness as the KSE-100 index closed at 174,454, down 5,150 points (-2.87%). The session remained decisively negative with no meaningful recovery attempt, reflecting continued fragile sentiment and sustained selling pressure.
Broad-based declines were witnessed across commercial bank, oil & gas, fertiliser, cement and power sectors. Heavyweight names including United Bank, Habib Bank, Meezan Bank, Fauji Fertiliser, Lucky Cement, and Hub Power remained under pressure, with banks contributing the most to the index’s decline. Selling was visible across the board as investors opted to reduce exposure, KTrade said.
Market participation stayed relatively low and even positive corporate developments could not shift sentiment. Bank Alfalah announced a Rs3-per-share dividend against expectation of Rs2.5 along with a 2-for-1 stock split, yet the broader market showed no meaningful response. Margin pressure appears to be building and in the absence of a strong catalyst, the bearish tone may persist, KTrade projected and advised investors to adopt a cautious stance.
JS Global analyst Muhammad Hasan Ather commented that the market witnessed a “bloodbath” as the benchmark index plummeted to 174,454, down 2.9%. The aggressive sell-off was primarily triggered by institutions offloading positions in blue-chip sectors like banking and energy.
Broader sentiment was further weighed down by persistent political uncertainty and lower-than-expected corporate earnings that failed to meet market expectations.
While upcoming relief packages for the textile and construction sectors offer a glimmer of hope, the market remains technically fragile, he said. “We expect continued volatility until institutional selling stabilises and the IMF’s third review provides a clearer macroeconomic roadmap,” Ather added.
Topline Securities observed that Pakistan’s equity market experienced a sharp sell-off, sliding into a deep downturn. The KSE-100 declined by 5,150 points and closed at 174,454. The steep drop was primarily driven by foreign outflows, as reflected in the previous session’s data. Additionally, escalating political noise further dampened investor confidence, which intensified the bearish momentum, it said.
Index-heavy constituents including Fauji Fertiliser Company, United Bank, Engro Holdings, Habib Bank and Bank AL Habib emerged as major laggards, wiping 1,680 points off the index, Topline added.
Arif Habib Limited (AHL), in its report, said that the PSX saw a decisive break away from 180k with an aggressive decline of 2.87%. Only 10 shares rose while 88 fell with Service Industries (+1.38%), Hum Network (+5.57%) and Lotte Chemical (+1.52%) contributing the most to index gains. UBL (-4.2%), Engro Holdings (-3.31%) and Fauji Fertiliser (-1.75%) were the biggest index drags.
AHL mentioned that Bank Alfalah (-1.62%) announced CY25 earnings per share of Rs17.67, -30% year-on-year, and dividend per share of Rs10.5. Also, an IMF review mission is scheduled to arrive on February 25 for a two-week stay, during which officials will assess economic performance from July to December 2025. “The drawdown from the January 2026 peak of the index has now extended to -9%,” AHL said.
Overall trading volumes increased to 773 million shares against Friday’s tally of 709 million. The value of shares traded during the day stood at Rs46 billion.
Shares of 487 companies were traded. Of these, 65 stocks closed higher, 378 fell and 44 remained unchanged.
K-Electric emerged as the volume leader with trading in 63.8 million shares, losing Rs0.42 to close at Rs8.13. It was followed by WorldCall Telecom with 62.2 million shares, falling Rs0.1 to close at Rs1.53 and The Bank of Punjab with 56.2 million shares, down Rs3.11 to close at Rs33.25. Foreign investors sold shares worth Rs3.3 billion, the National Clearing Company reported.
